Poverty To Increase By One Percent: Finance Minister
May 17, 2020 | Investopaper
Finance Minister Yubaraj Khatiwada has estimated that poverty will increase by one percentage point due to the impact of COVID-19. Corona’s impact is still uncertain and will increase by one percentage point, according to current conditions, he said.
According to the National Planning Commission, 18.7 percent of the population is below the poverty line before the corona epidemic. Out of the total population of 29.2 million, 18.7 percent or 54.23 million people are in poverty. If we follow as per the calculation of the Finance Minister Khatiwada, 29,254 people have been pushed below the poverty line. Those below poverty line earn 1.25 US dollars a day (152 rupees at the current exchange rate) and do not eat more than 2100 calories per day.
Economist Swarnim Wagle estimates that the poor could grow by more than 1 percentage point. He estimates that poverty will increase mainly due to the decline in remittances and stagnation in economic activities. The quake and blockade were estimated to have increased poverty by about 5 percent.
